“The Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, attributed the prevailing cash scarcity to the flawed execution of the naira redesign policy. Acknowledging significant flaws in various CBN policies, Cardoso announced a comprehensive review initiative aimed at rectifying these shortcomings.
Speaking at the launch of the World Bank Nigeria Development Update in Abuja, Cardoso emphasized the need for a thorough reassessment of implemented policies. He highlighted the objective of this review, aiming to produce a refined document outlining precise regulations for navigating the Nigerian money market.
Addressing the cash crunch affecting Nigerians, Cardoso pinpointed the poorly managed naira redesign as the primary cause. He explained that the uncertainty surrounding the policy’s end date, which was anticipated well before the third quarter, led to widespread hoarding as people feared the old notes would lose their legal tender status.
He stated, ‘Unfortunately, much of this situation can be traced back to the flawed implementation of the naira redesign policy. As the end of the year approached, well ahead of the projected third quarter timeline, widespread concerns emerged about the legal status of the old currency, prompting extensive hoarding.’
Cardoso expressed relief that the Supreme Court’s decision confirmed the continued validity of the currency beyond the year-end, alleviating some of the concerns.”